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Chile became one of the leading prosperous and competitive economies, not only in Latin America but worldwide. Currently, classified as a high-income economy according to the World Bank and ranked globally in 33rd place for its competitiveness in productivity growth. Due to the country’s macroeconomic and political stability, well-developed infrastructure, vast reserves of natural resources, business-friendly environment, as well as qualified talent, Chile became one of the ideal destinations in Latin America for foreign investors.
If you want to take advantage of Chile’s highly talented workforce, then it is essential to take a look at the country’s key labor laws and regulations.
4 Key Labor Laws in Chile
1. Labor Contracts: Hiring and Termination Process
According to the Chilean Labor Code, 85 percent of your company’s whole workforce must be Chilean. When it comes to employment contracts, these must be in writing (or verbal), specifying the terms and details about the labor relationship, such as salary, working hours, benefits, among others. Contracts must be executed within fifteen days after the employee started working for the company ―or five days when the contract has been signed for less than 30 days. In Chile, there is no specified or statutory probationary period. Generally, labor agreements, these cannot be signed for longer than one year. Nevertheless, for management positions, this period can be extended to two years. For the termination process, Chilean labor laws determine that both employees and employers must notify 30 days before the end of the employment relationship, or provide a full payment when there is no prior notice. It is worth mentioning that the main entities in charge of enforcing labor statutes are:- The Ministry of Labor and Social Security
- The Labor Directorate
